writer 0 2008-10-13T00:00:00Z The basis for the crisis is predictable and it was in fact predicted. It is built into financial liberalization that there will be frequent and deep crises. In fact, since financial liberalization was instituted about thirty five years ago, there has been a trend of increasing regularity of crises and deeper crises, and the reasons are intrinsic and understood. They have to do fundamentally with well understood inefficiencies of markets. So, for example, if you and I make a transaction, say you sell me a car, we may make a good bargain for ourselves, but we don't take into account the effect on others. If I buy a car from you it increases the use of gas, it increases pollution, it increases congestion, and so on. But we don't count those effects. These are what are called by economists externalities, and are not counted into market calculations. Noam 54370 true true 2008-10-12T14:36:50Z Chomsky 0 19111 0 1 Financial Crisis Interview the-financial-crisis-of-2008-by-noam-chomsky Interviewed by Simone Bruno 2009-09-25T13:51:51Z 206